Defense Secretary Pete Hegseth revealed during a House Armed Services Committee hearing on April 30 that the Pentagon is involved in classified Bitcoin initiatives. These programs operate on two parallel fronts: advancing the technology and working to neutralize it. Hegseth emphasized that these efforts grant the United States significant leverage over China in numerous situations.
In response to a question from Representative Lance Gooden of Texas, Hegseth stated his longstanding enthusiasm for Bitcoin and its potential. He acknowledged that many ongoing actions, whether supporting or countering digital currencies, are classified and provide strategic advantages. Gooden highlighted that Bitcoin has transformed from a niche asset into a critical national security issue, citing Iran’s use of Bitcoin at the Strait of Hormuz, North Korean ransomware attacks, and China’s strategies for accumulating cryptocurrency.
Earlier in April, Admiral Samuel Paparo, commander of US Indo-Pacific Command, confirmed that his unit operates a live Bitcoin node and tests the protocol in operational settings. He described Bitcoin as a system rooted in cryptography and proof-of-work that can impose costs in cybersecurity contexts. The combined statements from Hegseth and Paparo represent the clearest official acknowledgment to date of Bitcoin being used as a defense tool by the US government.
President Trump signed an executive order earlier in 2026 to establish a US strategic Bitcoin reserve, initially funded with roughly 200,000 coins seized from criminal forfeitures. Meanwhile, Iran’s demand for Bitcoin payments to transit the Strait of Hormuz has directly linked the cryptocurrency to active military conflicts. Geopolitically, Russia now controls about 16% of global Bitcoin mining hashrate, while China holds approximately 12% through underground and offshore operations, making mining geography a key factor in US-China competition.